What is:


Table of Contents

What is:

  1. Primary Auto Liability?
  2. General Liability?
  3. Cargo Insurance ?
  4. Physical Damage?
  5. Non-Trucking Liability?
  6. Non-Owned Trailer Liability?
  7. Non-Owned Trailer Physical Damage?
  8. Trailer-Interchange Liability?
  9. Worker's Comp
  10. Dead Mans Policy
  11. Umbrella / Excess
  12. Certificate of Insurance
  13. Uninsured Motorist Coverage (UM) / Underinsured Motorist Coverage (UIM)

 


Primary Auto Liability

Provides protection against legal liability arising out of the ownership, maintenance, or use of any insured automobile.

The federal government requires interstate for-hire carriers to have a minimum $750,000 in liability coverage. If you haul hazardous materials you need $1 million or $5 million, depending on the substance hauled. Because trucks are prime targets for liability claims - and jury awards can be huge - most insurance experts recommend a minimum $1 million in liability coverage plus "excess" or "umbrella" coverage to protect against catastrophic losses.

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General Liability

Insurance protects the business for any property damage or bodily injury that might occur which does not involve a truck. Coverage for liability that arises out of the conduct of a business. This could cover premises and operations exposures arising out of the location of the business, and also products and completed operations to cover damage from defective products or operations performed. There are other coverage's which may also fall under the general liability label.

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Cargo Insurance

Covers damage or loss of freight in transit.  This insurance coverage can have many exclusions such as unattended vehicle, maximum theft limitations on commodities such as liquor, electronics, garments or others. Make sure what you are hauling is covered and not excluded. Some items like baled cotton for example can be added as a covered commodity with no change in premium, but must be listed to be covered.

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Physical Damage

  Insurance coverage is for your truck and trailer. Commonly know as Comp & Collision or full coverage.

This pays for repairs or replacement if your vehicle is damaged by accident, fire or theft. Most policies also include "comprehensive" coverage, which pays for loss or damage due to vandalism or other causes. The most common "comprehensive" claim is broken or cracked windshields. Comprehensive coverage may or may not include personal items like CB's High end radio equipment, Laptops, cell phones, etc. Before you buy extra coverage, check to see if personal items are covered in your homeowners insurance. If you insure your truck for more than it's worth you'll pay more than you'll ever collect. If you buy too little insurance, an accident could require more cash than you have. Thus, the wise strategy is to get an appraisal of your truck's value at the time you apply for insurance. If you have an accident, it helps to have paperwork to document your claim. The appraisal will help. So will current photographs of the truck and receipts for component replacements and accessories.

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Non-Trucking Liability

Insurance pays for an accident when the driver/truck  is not under dispatch.  Required when you are leased to someone else. If you run under someone else's authority.

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Non-Owned Trailer Liability

Insurance coverage protects a trailer you are pulling for someone else.

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Non-Owned Trailer PD

Insurance coverage protects a trailer you are pulling for someone else for comp & collision

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Trailer-Interchange Liability

Trailer Interchange coverage provides Physical Damage insurance for trailers that you do not own while they are in your care, custody or control, being hauled under a trailer interchange agreement.

A trailer interchange agreement is a written contract between truckers or trucking companies that provides for the loan of trailers by the owner to a third party.

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Workman's Comp
Workers' Compensation is insurance that provides cash benefits and medical care if you or your employee become disabled because of an injury or illness related to your business.  If death results, benefits are payable to your surviving spouse and dependents as defined by law.
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Dead Man's Policy

In Workers Compensation Insurance terminology a "Dead Man's Policy" refers to a Workers Compensation policy when the company taking out the policy has no eligible employees. In many states a principal owner of a business with employees can be excluded from workers comp coverage on the theory that while regular employees must be covered

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Umbrella / Excess

An Excess Policy provides extra limits of coverage over and above the limits of primary or basic coverage.

An Umbrella Policy is a type of excess policy that provides the additional limits, and also includes additional coverage's

besides the primary or basic coverage.

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Certificate of Insurance

A short-form documentation of an insurance policy. This form can also be called a COI.

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Uninsured Motorist Coverage (UM) / Underinsured Motorist Coverage (UIM)
If a driver or owner of a vehicle does not have insurance or  have enough insurance, and is legally liable for an accident, you can use UM coverage for injuries, including death, that you, your resident relatives and occupants of your insured vehicle sustain, up to the limits that you select.

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Revised: 11/19/09.